Grassfed Meat Market
Grassfed Meat Market By Product Type (Raw Meat, Processed Meat, Fresh Processed, Cured Meat, Roasted and Precooked), By Nature (Grassfed, Grass, finished), By Animal Type (Cow and Bison, Lamb and Goat), By End User - Global Market Insights 2020 to 2030
Grassfed Meat Trade Impacted by Coronavirus, Consumers Dependent on Local Production
Demand for the grassfed meat and will grow at a CAGR of 5% during the forecasted period 2020-2030. Covid-19 has affected trade of livestock and meat across borders owing to its zoonotic origin. The key producers of grassfed meat including the U.S. and Brazil have to consume their buffer stocks within the country. Consumers in non-grassfed meat production clusters are further shifting their meat preference to conventional meat variants.
Under the impact of Covid-19, global grassfed meat market is projected to garner an eroded, absolute $ opportunity of around US$ 260 Mn between 2020 and 2030.
Demand for Grass-Fed Meatthrough Direct Sales Channel Is Expected to Stay On Top
The demand through direct sales channel, accounts for nearly 45% of the global grassfed meat market, owing to the rising demand from food processing companies and HoReCa, which is expected to grow at a CAGR of 3% during the forecasted period.
In 2020,the global grassfed meat consumption will be affected due to covid-19 pandemic and is expected to have lower demand in first two quarters.However, in Asia the demand will grow nearly by 2X following the ban on meat of wild animals in China, which is among the top consumers of grassfed meat in Asia.
Surge in Demand of Lamb and Goat Meat is anticipated to grow at CAGR of nearly 5%
Lamb and goat constitute nearly 1/3rd of the global grassfed animal head count owing to its significant demand in regions like Europe, South East Asia, MEA and Latin America. One of the key exporters of grassfed sheep,Oceania supplies nearly 30% of total sheep meat imports of Europe.
MEA is one of the larger grassfed sheep and goat consumers with high demand for halal meat. However, demand for lamb and goat meat is expected to grow at a CAGR of 5% in South East Asia owing to the 2019, ASEAN trade agreement.
However, Oceania accounts for nearly 70% of the global lamb exports in which the share of New Zealand is nearly 44% of the trade. Moreover, according to Ministry of Business, Innovation and Employment (MBIE), the market for grassfed sheep is expected to grow at a CAGR of 3% in upcoming years.
Established Countries to Create Notable Opportunities for Marketers
United States and Europe will generate demand for the grassfed meat owing to the rise in demand for grassfed meat in HoReCa and food processing ingredient business. However, impact of coivd-19 can affect demand in emerging nations.
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Top Players Are Collaborating to Obviate Competition with Emerging Players
Global grassfed meat market has fragmented after the rise of emerging players like Pre Brands and Verde Farms that are focusing on new products with different strategies like labelling. To meet the evolving competition in their region, top players have now started collaborating with each other and are trying to minimize their supply chain disruptions by collaborating with supermarkets and stores.
- In January 2020, JBS signed a distribution agreement with WH Group to enter more than 60,000 point of sales locations in markets of China.
- In March 2019, Australian Agricultural Company Ltd, went into a small joint venture with Classic Fine Foods to introduce its signature food menu in 5 restaurants in Dubai.
- In April 2019, Creekstone went into join venture with Walmart, to support its supply channel of Angus beef.
- In 2019, Sysco Corporation acquired J Kings Food service, J & M Wholesale Meats and Imperio Foods, to extend its distribution channels as a part of its strategic acquisition.
Impact of Covid-19 on Global Grassfed Meat Market
Covid-19 outbreak has negatively impacted the food and beverage industry globally, where country and statewide lockdowns have cut demand and created havoc in supply chains. The meat market as a whole and grassfed meat in particular have also faced a cascading impact of the crisis as the demand has been observed to shrink in January and February 2020 as compared to the demand during similar months in 2019.
In February 2020, New Zealand has seen nearly 40% fall in meat import from China, while according to USDA demand for beef and veal from China has fallen by nearly 10% in January 2020.
The global market has faced a similar drop in demand during 2009, where the demand for beef trade had faced a downfall of up to 10%, owing to the sub-prime crisis in the US. However, surge in demand right from 2010 was nearly 2X in United States as economy recovered. Similarly under the Eurozone crisis, the demand for processed meat had dropped at a CAGR of nearly 3% in Eurozone area, where it took around two years for the regional demand to ameliorate.
The extent of grass-fed meat demand shrinkage in 2020 can be understood under three scenarios: optimistic, pessimistic, and probabilistic. Under the optimistic scenario, the global grass-fed meat market is expected for remain under the strong impact of Covid-19 in the first quarter of 2020, and from second quarter, the demand will rise.
On the other hand, under the probabilistic scenario, the market is expected to remain under strong influence of the crisis till second quarter, and from quarter 3 onwards, the situation will ameliorate. While in the pessimistic scenario, the impact of crisis may disrupt the demand of grass-fed meat for all four quarters, and the market will only start showing improvement in the first quarter of 2021, with the restoration of consumer confidence.
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Grassfed Meat Market: Segmentation
FactMR’s study has done the segmentation of grassfed meat market on the basis of base product type, nature, animal type, end user, sales channel and regions.
By Product Type :
- Raw Meat
- Processed Meat
- Fresh Processed
- Cured Meat
- Roasted and Precooked
By Nature :
By Animal Type :
- Cow and Bison
- Lamb and Goat
By End User :
- Food Processing
- House Hold
By Sales Channel :
- Direct Sales
- Retail Sales
- Hypermarket and Supermarket
- Online Retail
- Meat Stores
- Other Retail Channels
By Region :
- North America
- Latin America
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